San Francisco has long been the go-to for founders looking to build the next big thing, known as a hub for tech talent, investment, and trends. But now the Indian city, Bengaluru is quickly emerging as the next major startup hub.
Nick Linck, an X (formerly Twitter) user, recently shared an insight, “Your startup’s runway can stretch five times longer if you choose Bengaluru over San Francisco.”
But how?
For starters, you can get a place to live and hire a cook for just $500 a month. Compare that to San Francisco’s sky-high living costs, and it’s no wonder early founders are starting to rethink their options.
And so now is the time to consider this massive savings potential.
The reality is that most startups fail because they run out of money. So, this tip may help founders make more time to build by cutting down on living expenses.
Bengaluru’s Startup Scene
What sets Bengaluru apart is also the startup’s substantial venture capital funding. In 2020, Bengaluru attracted over $10 billion in venture capital investments, surpassing leading hubs like San Francisco and London.
Linck also pointed out a major milestone: South Park Commons, a community of founders and engineers, just opened its third global office in Bengaluru, after San Francisco and NYC. Seems like the big players are taking notice of this emerging ecosystem.
Another example is Indian-origin entrepreneur Hardeep Gambhir. In February 2024, moving to Bengaluru wasn’t on his radar but looking at India’s growing concentration of builders, he flew out from SF last May and now finds himself torn between two cities.
AI Startups in Bengaluru
Coming down to AI startups, the emergence of companies like Sarvam AI, which focuses on developing advanced AI models, reflects Bengaluru’s commitment to technological innovation.
Krutrim AI, led by Ola’s founder Bhavish Aggarwal, has raised $50 million in funding at a $1 billion valuation and is now India’s first AI startup to reach unicorn status.
Innovation in AI isn’t limited to corporate giants. Startups like KOGO OS are disrupting markets with their AI operating systems, offering modular AI assistants tailored for diverse industries. Meanwhile, Karya AI is pioneering in the rural employment sector, leveraging AI to create job opportunities through tasks in local languages, with notable partnerships with tech giants like Microsoft and Google.
These home-grown initiatives underscore Bengaluru’s status as a hub for AI innovation, promising transformative impacts across multiple sectors.
Speaking to AIM at the IGIC event 2024, Sanjeev Kumar Gupta, the CEO of Karnataka Digital Economy Mission, mentioned, “There are over 1,000 AI startups in Bengaluru. With initiatives like Beyond Bengaluru, we are also promoting AI startups, in Mysuru, Hubli, and Mangaluru.”
It’s evident that the city is buzzing with startup energy. While cities like San Francisco, New York, Beijing, and Shanghai lead the global startup ecosystem, Bengaluru, often dubbed as India’s Silicon Valley, ranks 33rd among global startup hubs according to PitchBook’s October 2023 survey.
Recent statistics highlight Bengaluru’s burgeoning startup landscape, boasting over 10,000 startups valued at approximately $50 billion. These figures underscore the city’s entrepreneurial vigor and its ability to foster an environment conducive to startup growth.
Bengaluru’s HNIs
Bengaluru’s rise isn’t limited to startups alone. According to Henley & Partners, the city is one of the world’s wealthiest cities in the 2024 list with its millionaire population more than doubling in the past decade. The city’s thriving tech sector attracts substantial wealth, propelling it into the top 10 wealthiest cities globally.
Bengaluru is now home to over 13,200 high-net-worth individuals, each with investable assets exceeding $1 million.
While New York leads the world with nearly 350,000 millionaires, the Bay Area, comprising cities like San Jose, San Francisco, and Palo Alto, has emerged as the second wealthiest region worldwide, boasting over 305,700 millionaires.
So, as we watch the next chapter of Bengaluru’s startup journey unfold, one thing is clear, keep your eyes on the city, because it’s only getting started.
